The housing market isn’t as crazy as it was in 2021, but sales haven’t ground to a halt just yet. Being a landlord in San Antonio in 2022 and beyond might not be as easy as it was in the past, however, so below are five tips to help make your efforts a little more smooth.
1. Work with a property management company
The biggest reason to work with a property management company in San Antonio is you can hand off your landlord duties. It’s never easy to be one, but it’s become harder during the pandemic.The most challenging aspect of being a landlord is having to deal with evictions, and thankfully, a property manager will tackle those for you. Since the eviction moratoriums have ended, thousands of people are facing the prospect of being pushed out of their homes, if they haven’t already vacated.
If you’ve never had to pursue an eviction before, you’re probably not going to enjoy the process. In theory, evicting a tenant isn’t a big deal: You file a lawsuit with the court and go before a judge, and the tenant will be ordered to leave your property.
But that’s not necessarily how it works in reality. In practice, evictions can be messy, chaotic, and frustrating.
They can also be expensive, even if you win. During an eviction, your tenant might cause major damage to your property, and if you commit an error in your noticing or interactions with the tenants, a judge might rule against you.
2. Pay attention to inflation
What does inflation have to do with renting properties? Technically nothing, but in 2022 and beyond, monitoring inflation will help you prepare for a market dive, should one occur.As inflation rises, your tenants will be spending more of their income on necessities like food, gas, and household supplies; and if the inflation rises to a certain level, some people will have to choose between paying rent and putting food on the table. The inevitable result is that you’ll stop receiving rent payments.
Could a recession or depression be on the horizon?
There’s no denying the economy is in bad shape. No matter how many times the stock market gets boosted artificially, something isn’t right.If the market crashes, the U.S. could enter into another depression – maybe not as big as the Great Depression of the 1930s, but tough enough to make it difficult for all of us. If the economy shifts into a depression, many people won’t be able to pay rent.
Will inflation continue to rise? Could it become hyperinflation?
One can’t know for sure, but as a property investor you don’t want to take chances. Keep an eye on the inflation rate, because it might be your best heads-up before a market crash.
3. Evict early and fast
If you start noticing signs that a tenant might have to be evicted, start the process right away and don’t wait. Don’t provide multiple chances.Give renters the initial notice to quit or vacate that signals they have an opportunity to fix the problem. However, don’t hesitate to file the eviction lawsuit the minute their time is up.
If you don’t start the eviction process in a timely fashion, you risk suffering extensive damage to your property. If you grow frustrated, you might make a mistake when interacting with your tenant which could lose your case.
For example, if you change the locks or cut off utilities to force people out, the court will likely rule against you.
4. Pursue fix-and-flips
If your entire investment strategy has been to acquire rental property, consider branching out with fix-and-flips. Properties are getting more expensive; mortgage rates are rising and buyers are getting into bidding wars that result in a sale price thousands of dollars above the asking price.Apart from high sale prices, some renters may not be able to afford rent in the future. If inflation continues to rise, you don’t want to get stuck with a new mortgage and no ability to generate rental income to pay for it.
5. Upgrade to smart properties
One thing you can do to make your residences more attractive is to equip the units with smart technology such as thermostats, locks, and a CCTV surveillance system. Granted, you should make sure the surveillance system is designed for your tenant’s use only, to make their life easier.Use these tips to manage your San Antonio properties better
There’s no doubt that being a landlord is a big responsibility. Between managing the physical property and taking care of your tenants, you have a lot on the line.
But we hope these tips will help you manage your San Antonio properties more handily.